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 Ukraine Takes Loans at the Highest Interest Rates, Former Minister of Economics Says

Presently Ukraine takes money loans in foreign currency at the interest rate of over 9% annual.

None of the European countries takes loans at such rates, said ex-minister of economics Viktor Suslov in an interview.

TSN reports that the expert stated that "the situation with national debt as well as gross national debt is rather complicated because these loans are taken at very high interest rates, currently over 9% annual".

Suslov reminded that until September 15 the government has to submit a proposed state budget 2013 for consideration by the parliament. He thinks that we need to decrease the budget deficit as much as possible, even try to cut it down to zero in order to stop building up the national debt. Though, the economist thinks the debt will grow in relation to GDP since new loans will have to be taken.


"They have to stop borrowing. All loans are taken at very unfavroable conditions and at very high interest rates. That is why they have to be limited", concluded Suslov.


As of the end of July the national debt of Ukraine constituted 46 billion dollars.

 
 
 
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